KARACHI: The year 2023 ended with no major relief for consumers in essential commodities as the government failed to show any serious efforts to control rising prices at various levels.
The unbearable burden of electricity and gas bills has decimated the purchasing power of people who were already reeling with skyrocketing inflation.
In the entire year, consumers witnessed only one significant reduction in the loose milk prices which was a result of some seriousness displayed by the city government in dealing with milk sector stakeholders.
In case of other commodities, the writ of the price regulator remained confined to issuing daily and fortnightly price lists rather than implementing the official prices strictly.
Most of the retailers do not display the price lists and even if the lists are displayed on the shops, consumers do not get the items at official rates.
Govt failed to control rising prices at various levels
Only a few shops were sealed for overcharging or for not displaying the price lists and heavy fines were imposed on profiteers by the city government officials.
January-December comparison
A comparison between the prices prevailing in the first week of January, 2023 and December 31, 2023, indicates that the price of 20kg bag of wheat flour rose to Rs2,800-3,000 from Rs2,700-2,900.
The 10kg wheat bag and fine flour prices are now selling at Rs1,230 and Rs1,500-1,600 as against Rs1,250 and Rs1,500 a year back, showing no significant change despite huge wheat imports during July-November 2023 by the private sector and quite a good wheat harvest in March/April in 2023.
The price of average quality beef with bone is Rs850-1,000 per kg as compared to Rs750-850 while mutton average quality meat is selling at Rs1,600-2,000 per kg versus Rs1,500-1,800 a year ago.
Poultry live broiler and eggs are now selling at Rs420-440 per kg and Rs370-380 per dozen as against Rs390-420 and Rs280-290 a year ago.
The rates of gram pulse, mash, moong and masoor are now Rs230-280, Rs520-560, Rs280-320 and Rs320-360 per kg as compared to Rs220-260, Rs350-400, Rs250-280 and Rs240-270.
Powdered milk Nido 390grams and loose fresh milk carry price of Rs800-830 and Rs200 as compared to Rs620-640 and Rs180-190 a year ago.
However, the intervention of the Karachi commissioner had forced milk retailers to sell milk at the official rate of Rs200 instead of Rs220-230 per litre.
Vegetable prices
Potatoes, onions and tomatoes, which were available at Rs40-50, Rs180-220 and Rs40-60 in January, are now selling at Rs50-80, Rs150-200 and Rs70-120 per kg.
Consumers also faced the brunt of massive exports of onion. Traders said that many stakeholders had imported Iranian onion and made huge exports to capitalise a ban imposed by India on its onion exports till March 2204.
Country’s overall vegetable exports swelled to 64,285 tonnes in November 2,023 from 49,842 tonnes in October 2023. Onion holds a big share in vegetable exports.
Retailers also kept sugar rates high at Rs135-145 per kg as compared to Rs90-100.
Good quality cooking oil five litre, vegetable ghee 2.5kg and one kg ghee pouch rates remained almost unchanged at Rs2,745, Rs1,310 and Rs509 compared to January, 2023.
Lipton less than 250gram pack is sold at Rs542-558 as compared to Rs413 while less than 250gram chilli powder of a branded company is available at Rs400 as compared to Rs240.
According to Sensitive Price Indicator (SPI) ending December 28, 2023, gas rates soared to Rs1,711 per million British thermal units from Rs141.
On the other hand, the phenomenal rise in electricity rates within a year almost destroyed consumers’ purchasing power.
An ordinary meal price
As per SPI data, cooked beef, daal and an ordinary prepared tea at an average hotel in Karachi now cost about Rs280-350 per plate, Rs140-170 per plate and Rs60-70 per cup as compared to Rs250-300, Rs120-150 and Rs50, respectively.
Difficult year
Chief Executive of Top Line Securities, Mohammad Sohail said 2203 was a difficult year for consumers due to record higher inflation of close to 30pc.
Many consumer companies saw their unit sales falling due to higher prices and falling purchasing power of people.
He said with inflation likely to ease in 2024 “we may see recovery in unit sales”.
However, the overall economic environment and new deal with the International Monetary Fund will dictate the overall consumer confidence in 2024, Mr Sohail added.
Price lists disparities
Many retailers believe that the city government’s price lists had been prepared without taking associations on board.
As a result, a huge disparity exists between the market retail and wholesale rates as compared to the rates fixed by the price regulator.
By fixing unrealistic rates, retailers are facing heavy fines for not selling the products at control rates.
They said that high food inflation was forcing many consumers to shrink their buying to limited quantities or as per their requirement instead of lifting in large quantities.
Employees in private sector
The rest of the damage on the financial health of consumers was done by unaffordable utility bills, forcing many people to curtail their daily spending on foods and take loans to manage house expenses.
Under the unbearable utility bills and high prices of essential items, the most affected people are certainly those working in the private sector awaiting any pay rise for the last many years.
Rupee fall
Pak Rupee lost its strength by 20pc against the dollar in 2203 in the interbank market despite some recovery in the last few months.
Rupee fall had made the landed cost of imported raw material and finished goods costlier in the country. In the interbank market, one dollar is available at Rs281.86.
Consumers had also not seen any positive impact of decline in transportation charges in view of drop in diesel rates to Rs276.21 per litre from Rs329.18 in September 2023. Operators of private buses, coaches, minibuses and Chingchi rickshaws continued to charge higher fares.
Published in Dawn, january 1st, 2024
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